VCs Pour $14.2 Billion Into Crypto In H1 2022, But Investment Is Slowing Now

KPMG noted that despite the expected decline, investment numbers remain well positioned relative to pre-2021 numbers, putting highlight the increasing maturity of the market.

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Venture capital firms invested $14.2 billion in crypto across 725 deals in the first half of 2022, but big four accounting firms KPMG predict investment will likely slow for the rest of the year .

According to a newly released KPMG report on Tuesday, the largest investments in the first half of 2022 came from Germany-based crypto trading platform Trade Republic ($1.1 billion), custodian digital assets Fireblocks ($550 million) and crypto exchange FTX ($500 million). ) and Ethereum software company ConsenSys ($450 million).

The report's authors, including KPMG's global fintech leader Anton Ruddenklau, noted that investment figures for the first half of 2022 alone had already more than doubled every year before 2021, which "puts highlighting the growing maturity of the space and the breadth of technologies and solutions attracting investment."

However, Ruddenklau said overinvestment during the record high period of 2021 and the first half of 2022, along with an impending potential recession, rising inflation, rising interest rates, and the Russian conflict -Ukrainian, would lead to lower investment. this year.

Total Global Investment Activity (VC, PE and M&A) in blockchain and cryptocurrency. Source: KPMG.

KPMG's prediction of a slowdown in crypto investment already appears to be confirmed by July data, with monthly inflows to the blockchain venture capital market having fell 43% during the month, according to Cointelegraph Research.

Ruddenklau expects the slowdown in interest and investment in crypto to be particularly felt in retail businesses offering coins, tokens, and